Personal finance is about managing your own money - how much you spend, save, get into debt, and invest.
How you manage your money will depend on your age, education, ambition, family, and country of residence. While this guide will give you enough input to work out a strategy, you should always consider your own personal situation.
Consider where you find yourself as each phase requires a different strategy.
Three accounts make it easier to get a grip on your finances.
The rule is to pay your fixed costs first, then wire cash to your savings account. Spend what's left in your checking account.
Debt is a liability unless you use it to finance income-generating assets. Don't take on debt for anything that does not increase in value over time.
Suitable forms of debt include buying real estate as a rental property, investing in your business, or a student loan.
It is too risky to rely on one source of income. Try to generate income without trading your time for money.
Ways to generate extra income:
First manage the money you do have, then use your money to generate more money. You don't need to think about investing until you're out of debt and have multiple ways of generating income.
❤️ Brainstash Inc.